Out of the Box

Positive Spinning for Villains

By Menachem Lubinsky on May 04 2008

These are difficult days in the US and in other parts of the world as years of prosperity have given way to a slumping dollar, a down economy and soaring prices for fuel and food. The housing boom which drove much of the prosperity is now but a memory. As is typical in times of recession, fingers are pointed at those who many believe may be responsible for their calamity. For example, with fuel nearing $4.00 a gallon, one would expect anger by consumers when they continue to observe the large profits of the oil companies.

Or take the tobacco companies that are blamed for everything from causing many deaths to pollution and yet continue to chalk up huge profits. Of late, one can add the Archer Daniels Midland, the largest producer of ethanol, whose soaring prices are blamed for the increased costs for such commodities as oil, shortening and wheat. When consumers see that they made profits of $11 billion or so in 2006 and even more in 2007, there may undeniably be anger.

At first glance, one would wonder why any of these companies would even care what the average consumer thinks of them. There is a common expression of “laughing all the way to the bank,” which some might say applies here. But for many of these companies, it is not quite that simple. Some of their enterprises are subject to regulation, which means that they may one day have to face the public at a hearing. They certainly are anxious for the goodwill of legislators who hold the key to whether they will continue to be able to realize such profits. Finally, there is the social pressure of not being perceived as “the bad guy.”

Several recent marketing articles focus on just how ADM is trying to shift the blame away from the ethanol increases and instead name such culprits as the farmers and even farm legislation. In other words, it is always a good thing to try to shift some of the blame away from yourself and onto someone else. The oil companies do this with regularity, blaming the oil cartel and the soaring price of a barrel of oil. As for the profits, they will tell you that given their efforts, they are entitled to the money.

Several years ago a leading US manufacturer was accused of damaging the environment with excessive dumping of wastes. The company was the victim of a relentless press that had all but dubbed them as killers. Despite press releases of just how much they were doing for society, the barrage continued. PR professionals counseled that the company make a special effort to fund community projects, particularly those that are located near the manufacturing sites. In addition, the company was counseled to strike a deal with the local municipality for a safer disposition of the waste. Within a year, the company began to receive positive press, although one investigative reporter found that the dumping basically continued.

Being categorized as a villain is, of course, not a pleasant designation, but if it means preserving a business, the villain need only find the spin that makes it more acceptable. When a furrier was targeted by an animal rights group for killing animals in order to dress people, the furrier shot back with images of famous celebrities associated with the group that wear fur and then launched a coat drive for the poor. The opposition, which included periodic pickets at a flagship store, eventually ceased.

The tobacco companies basically stay out of public view but are involved in spinning all the time. They are barred from advertising so that their promotional dollars are spent on sponsorships. But the second a study is published that shows cigarette smoking as not being as dangerous as was thought, they make sure to spend millions to get that word out. Given all the hype about the destructive nature of smoking, there have been relatively few lawsuits against them. They have basically “gotten away with murder,” as one newspaper put it. So what does their PR consist of? Their press releases deal with what they do for the community. You would never even know that they sell tobacco products if you didn’t recognize the brands. They recognize that despite not being able to aggressively market their products that society will always provide them with customers.

In an approach that is even more clever is that the tobacco companies actually provide grants for medical research such as cancer and heart disease, oft times related to cigarette smoking. This is an effort to demonstrate that they are socially responsible despite selling products that are responsible for one of the leading causes of death in the US. Many also focus their efforts overseas where smoking many not be as taboo as in the US.

As food prices continue to soar, a company like ADM will be increasingly on the carpet. Like the tobacco companies they will be searching for ways to show that they are socially responsible and not deserving of the criticism. You can look for them to embark on a spin program that will attempt to divert the attention of the consumer about their role in the price increases. They will, of course, have to deal with the issue of why they are entitled to such huge profits at a time when the consumer is hurting. They will most likely spin their response in much the same way as the oil companies, blaming everyone for the price increases and taking the sting out of the criticism against them. It is never good to be positioned as a villain but with modern-day PR, it is possible to spin and that is exactly what villains do nowadays.

Out of the Box is a collection of strategic marketing articles that Lubicom has published on various topics, trends and ideas in the marketing world. The articles have been published in the Hamodia weekly newspaper circulated on three continents to a readership of well over 100,000.

The name, "Out of the Box" is a term used frequently in business nowadays to describe creative thinking that is not the norm. It is meant to help a business pull away from the pack or separate oneself from the competition. It is to some extent fraught with risk, simply because it is not the run of the mill thinking, but it is at the same time the key to reaching the next opportunity.